Online Support Chat
myICLUB Blog

myICLUB Blog

 

Results Are In: The SmallCap Informer Beat the Broader Market in 2023

1/5/2024

Not only did our SCI picks outperform the small-cap indexes, they also bested the broader market returns in a rare feat.

Due to the non-correlation of small-cap stocks to large-caps, one of the benefits of investing in small companies is that your portfolio may get a boost when larger companies are underperforming (and vice versa). During periods when large company stocks are outperforming, it is a bit harder for the small company stocks in your portfolio to match the returns of the broader market.

But that's exactly what happened to the SmallCap Informer's stock picks in 2024. Not only did our SCI covered stocks handily beat the return of the S&P SmallCap 600, turning in a compound annual return of 26.77% to the index's 16.19%, our picks eased past the S&P 500 benchmarked rate of return of 26.24%:

SCI vs S&P 500 vs S&P 600 for 2023

While the SmallCap Informer has consistently beaten the returns of the S&P SmallCap 600 index, it's rare for our selections to beat the broader market. This is largely due to the impact of market sentiment on our picks. Investors as a whole tend to run hot or cold on small company stocks, so our stock picks, while fundamentally sound, often are left on the sidelines until investors turn their attention toward the smaller end of the market.

But in 2024, a combination of some contrarian thinking about the market and economy and selection of some fundamentally sound companies helped boosted the SmallCap Informer's picks not only past the small-cap indexes but also above the broader market. Certainly a few of the year's best performing stocks that were recommended early in the year helped the returns. Take a look at these winners from the January and February 2023 issues of the newsletter:

Ticker

Company Name

Issue Recommended

% Gain thru Year-End*

SSD

Simpson Mfg.

January 2023

+122.5%

KAI

Kadant

January 2023

+60.6%

HWKN

Hawkins

February 2023

+85.6%

AFYA

Afya Ltd.

February 2023

+43.8%

* From date of recommendation issue through 12/31/2023. Includes dividends.

How many of these stocks did you snap up after they recommended in the issues?

We see the success of our company selection in 2023 as evidence that our methodology is sound, look forward to continued success in 2024.

* * *

Want to put the SmallCap Informer to work for your portfolio? If you subscribe today, you can receive your free seat at our next exclusive subscriber's webinar scheduled for January 24, 2024, when editor Doug Gerlach will review the year in detail and provide an outlook for 2024. You'll also receive our "Top Small-Caps for 2024 Special Report" when it is released at the webinar. This is on top of 12 monthly issues and other regular benefits of a subscription.

Subscribe to the SmallCap Informer.


Not a subscriber? Subscribe to the SmallCap Informer and get monthly small company stock recommendations and updated buy/sell prices for each of the 49 high-quality small company stocks currently covered in the newsletter.